There are many uncontrollable risks in agriculture: crop impairments occur due to extreme weather, insects, diseases, and other factors. Many of these risks are closely linked to climate change and monoculture. As these two factors progress, it is likely that the frequency and severity of these events will increase.
While farmers can contribute directly to transforming monocultures into diverse, resilient ecosystems, in many places, they bear the risks from environmental factors on their own. A good harvest ensures the livelihood of farmers and their families. However, a compromised harvest can quickly become a threat to their existence.
At TEIKEI, we are committed to ensuring that farmers do not carry the burden of harvest risks alone. Instead, these risks are shared in solidarity across the entire community. A weaker harvest may have a slight negative impact on the community, but no livelihoods are endangered as a result.
Through well-developed distribution systems, harvest risks are already factored into the pricing. For instance, in the case of a crop loss of up to 40%, no additional costs are incurred by the community. At the same time, farmers retain their full revenue, as an internal safety fund has been set up to absorb such losses. This ensures that both farmers and the community are protected from the impacts of crop failures.
We currently operate with a distribution system that already integrates these risks into pricing. However, conditions are changing rapidly in today’s world, and ongoing dialogue within the community is essential to ensure that the risks are optimally distributed and that agriculture remains sustainable for everyone involved.